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General Instructions for All Papers ~/~ Paper 1 ~/~ Paper 2 ~/~ Paper 3

GENERAL INSTRUCTIONS

The purpose of these papers is for you to analyze a news article using the models (graphs) that we have learned in each unit. This should help you learn to make connections between theory and reality. This connection, of course, can be made, but it is not always a smooth one. For each unit you are to find an article in the popular press. You must make sure you have the right type of article, as well as an article that provides enough information. You may want to show your article to the instructor BEFORE you begin writing. Then you are to ANALYZE the article using the MODELS (graphs) covered in a particular chapter (or chapters) in each unit. Do not summarize the article. The purpose of these papers is for you to demonstrate that you know how to use the economic models (graphs) to EXPLAIN what is happening in the news article.

• all papers must be typed, double spaced, and stapled in the upper left corner
• they should have NO cover page, plastic covers, etc.
• you must include the article
• on the article you must indicate where the determinants (papers 1 and 2) or the Fed tool (paper 3) are discussed. CIRCLE the determinants or tool and LABEL on the actual article. (i.e. you must write on your article.)
• The first page of your paper must include:
  • paper title and number
  • student's name and CLASS MEETING TIME
  • bibliographical data (where did you get the article?)
  • a TOPIC OUTLINE of your paper
    • read: HOW TO WRITE AN OUTLINE
    • paragraphs in your paper must correspond to your TOPIC OUTLINE (See: HOW TO WRITE AN OUTLINE)
    • usually a paragraph will correspond to a Roman numeral (I. II. III. IV. etc.) on your topic outline.
• write your outline first, then write the paper as you would an English composition with complete sentences, correct punctuation, etc. The paper must follow your topic outline.
• all papers MUST be more than one paragraph
• all papers must contain hand drawn graphs that show the CHANGES discussed in the article
  • you must discuss the graphs IN THE PAPER
  • you must tell the reader when to refer to the graphs and explain the graphs
  • graphs WILL NOT contain numbered axes, exact data is not important, we are concerned with CHANGES
  • graphs must be re-drawn on all rewrites.
• REWRITES - Papers can be rewritten for full credit with the following restrictions:
  • original papers must be turned in by the due date to earn the chance to be rewritten. Papers can be turned in late but they cannot be rewritten.
  • Rewrites, or original papers, must be handed in no later than the final date listed on our class SCHEDULE. About 3 weeks after the original due date.
  • You must hand in all earlier drafts with your rewrites. Earlier drafts must be stapled to the BACK of the rewrite.
  • Graphs must be re-drawn on all rewrites
• GRADING: 10 points total, but students will only receive a 0, 1, 2, 3, or 10. Only an "F" or an "A", so the chance to rewrite the paper is important.

PAPER 1: SUPPLY AND DEMAND (Ch. 3)

See the "General Instructions" at the top of this webpage. You must have a topic outline. See: HOW TO WRITE AN OUTLINE

Find a news article on an INDIVIDUAL PRODUCT whose PRICE and/or QUANTITY SOLD has changed. The article should indicate why the price and/or quantity has changed by noting which non-price determinants of demand or supply have changed. The article must mention at least TWO non-price determinants that have changed. If the article mentions more, then you must discuss them in your paper as well. If you cannot find an article that mentions two different determinants then you may use two different articles that mention only one determinant each, but they must be different determinants.

SAMPLE ARTICLES:
http://cnn.com/US/9907/27/gas.prices/
http://cnn.com/US/9908/09/rv.boom/

INSTRUCTIONS

Use supply and demand graphs to show changes in the equilibrium price and/or quantity was caused by the changes in the non-price determinants. Clearly discuss what happened to the non-price determinants, what happened to supply and demand, and what happened to the price and quantity sold of the product as a result. Explain your graph in your paper. Do not summarize the article. Write a paper about the graph.

The following are also REQUIRED for paper 1:

• See the "General Instructions" at the top of this webpage. You must have a topic outline. See: HOW TO WRITE AN OUTLINE
• News articles must be printed and stapled to the back of your paper
• Include bibliographic data. (Where did you get the article?)
• On the article CIRCLE and LABEL the statements that indicate that a non-price determinant of supply or demand has changed. You must write on the article. You must circle or highlight the sentence or sentences that indicate that a non-price determinant has changed AND you must write which determinant it is.
• Your paper MUST include a supply and demand graph.
  • Your graph must show the changes in demand and/or supply that caused the change in equilibrium price and quantity. This means that the demand and/or supply curves must shift.
  • The graph must show the change in equilibrium price and quantity mentioned in the article. Example: P1, P2, Q1,and Q2.
  • In your paper you must say something like " . . . therefore demand has increased. This will shift the demand curve to the right. On the graph below you can see that an increase in demand will shift the demand curve from D1 to D2. As a result, the price of the product will increase (from P1 to P2) and the quantity will increase (from Q1 to Q2)."
  • If you are discussing one product, then all changes should be made ON THE SAME GRAPH.
  • Hand-drawn graphs, well labeled, are required.
  • On your graph be sure to label the horizontal axis with the product that you are discussing (for example "Q of gasoline" or Q of boats"). THIS IS REQUIRED.
  • Supply and demand must be drawn on the SAME GRAPH with the equilibrium price and quantity clearly labeled.

Before beginning to look for a news article and writing your paper:

• read and study chapter 3
• watch the chapter 3 videos
• do the chapter 3 Required Activity and all of the Yellow Pages for chapter 3
• attend class and take plenty of notes
• rewrite your notes from class

Purpose of the Paper: 

• The purpose of this paper is to show me that you understand how to use supply and demand graphs to explain why prices change.
• Do not summarize the article, but rather explain your graph.
• Let me say this again. Do not summarize the article. Only use the parts of the article that explain the change in price and quantity. You should be summarizing the textbook and class notes to EXPLAIN YOUR GRAPH. 

Grading:

• 0/10 means that you did not follow the instructions and start over (if you handed in your original paper on time).
• 1/10 means get a new article and start over (if you handed in your original paper on time).
• 2/10 means that only one determinant was found in the the article. If you handed your paper in on time you may get a new article that has two determinants and write another paper OR use the first article using that one determinant AND find another article with one more determinant and write another paper.
• 3/10 means that two or more determinants were found in the article, but you must rewrite your analysis
• 10/10 means you are done! 

Examples of how you should analyze the article:

• Beef and Chicken - Key Problem video
• Almonds - Key Problem video
• McDonald's - Key Problem video
• http://www.harpercollege.edu/mhealy/eco212i/lectures/ch3-18.htm#real

Other Useful and Short Videos:

• Econ 2.1 Demand and Supply Explained (1 of 2) (6:43)
• Econ 2.2 Demand and Supply Explained (2 of 2) (4:54)
• Econ 2.3 Shifting Demand and Supply (4:50)
• Econ 2.4 Supply and Demand Curves- ACDC Econ (4:43)
• Econ 2.6 Double Shifts in Supply and Demand: Econ Concepts in 60 Seconds (2:34)

PAPER 2: AGGREGATE SUPPLY and AGGREGATE DEMAND (Ch. 12)

Now we will be discussing the WHOLE ECONOMY and we are looking for changes in unemployment (UE), inflation (IN), and economic growth (EG). For paper 2 you must find an article that discusses a change in unemployment, inflation, or economic growth and include at least TWO non- price level determinantss of aggregate demand and/or aggregate supply. Clearly explain what changes occurred to these determinants and what effect these changes had on UE, IN, and EG. Do this by using AS/AD graphs which show a change in equilibrium (see textbook figures 12.7 - 12.11 and yellow pages).

The following are also REQUIRED for paper 2:

• See the "General Instructions" above. You must have a topic outline. See: HOW TO WRITE AN OUTLINE
• Attach a news article
  • Before beginning to look for a news article and writing your paper:
    • read and study chapter 12
    • do the Required Activities and all of the yellow pages for chapter 12
    • attend class and take plenty of notes
    • rewrite your notes from class
  • Then FIND AN ARTICLE:
    • An article on a country that has had a change in unemployment (UE), Inflation (IN), and economic growth (EG).
    • The article must mention two DETERMINANTS of aggregate supply (AS) and/or aggregate demand (AD) that causes the change in UE, IN, and EG
    • In the article CIRCLE the statements that indicate that a determinant of aggregate supply or aggregate demand has changed and LABEL the determinant on the article.
    • The news article must be attached to the back of your paper

• Your paper MUST include a well labeled, hand-drawn aggregate supply / aggregate demand graph.
  • The graph must show the changes in equilibrium price level and real domestic output (RDO or real GDP).
  • Your graph must show the changes (shifts) in aggregate demand and/or aggregate supply that caused the change in equilibrium price level and RDO. This means that the aggregate demand and/or aggregate supply curves must shift.
  • All changes should be made ON THE SAME GRAPH.
  • EXPLAIN YOUR GRAPH. In your paper you must say something like " . . . therefore aggregate demand has increased. This will shift the aggregate demand curve to the right. On the graph below you can see that an increase in aggregate demand will shift the curve from AD1 to AD2. As a result, the price level in the economy of the product will increase (from PL1 to PL2) and the real domestic output will increase from RDO1 to RDO2." In other words: EXPLAIN YOUR GRAPH.
  • The purpose of this paper is to show me that you understand how to use the aggregate supply / aggregate demand graphs to explain changes in unemployment (UE), inflation (IN), and economic growth (EG).
    • You must use your graph to explain why UE and IN have changed.
    • You must use your graph to explain changes in EG

   

• Do not summarize the article, but rather explain your graph.
  • Let me say this again. Do not summarize the article. Only use the parts of the article that explain the change changed in aggregate demand and/or agregate supply. You should be summarizing the textbook and class notes to EXPLAIN YOUR GRAPH. 

Grading:

• 1/10 means get a new article and start over (if you handed in your original paper on time).
• 2/10 means that only one determinant was found in the the article. If you handed your paper in on time you may redo your paper using another article
• 3/10 means that two or more determinants were found in the article, but you must rewrite your analysis
• 10/10 means you are done!

Examples of news articles:

• GERMANY: http://money.cnn.com/2001/08/23/europe/germany/index.htm
• BIG SURPRISE: http://money.cnn.com/2003/10/16/news/economy/gdp/index.htm
• KITCHEN SINK: http://money.cnn.com/2003/06/27/news/economy/secondhalf_economy/index.htm
• http://money.cnn.com/2009/10/01/news/economy/person_income_spending/index.htm
• http://money.cnn.com/2008/10/20/news/economy/stimulus_take_two/index.htm 

Examples of how you should analyze the article:

• Lesson 12b Key Problem Videos / Yellow Pages:
  • Article 1 - Red Flag
  • Article 2 - The US Economy has Reached a Turning Point
  • Article 3 - Economy is Bad, but 1982 was worse
  • Article 4 - Early 1980s Recession
  • Article 5 - The Roosevelt Recession
  • Article 6 - Post Korean War
• http://www.harpercollege.edu/mhealy/eco212i/lectures/ch12-18.htm#examples 

Videos that will help you learn how to use the graphs:

• Khan Academy - Historical circumstances explained by AD/AS: Demand-pull inflation under Johnson
• Khan Academy - Historical circumstances explained by AD/AS : Cost-push inflation

PAPER 3: MONETARY POLICY (Ch. 16)

Be sure to see the General Instructions above. You must have a topic outline. See: HOW TO WRITE AN OUTLINE For the third paper you must find a news article that discusses a change in monetary policy by the Federal Reserve Board. Often articles will say the "Fed" changed interest rates. Actually, the Fed has three main TOOLS that it can use. These tools will change the excess reserves in the banking system. This will encourage banks to make more or fewer loans which will affect the money supply. The change in the money supply will then cause a change in the interest rates. Your article must mention WHICH TOOL the Fed has used to change the money supply. If the article doesn't mention a tool then we assume that they are using Open Market Operations (OMO). The news articles must be printed and stapled to the back of your paper In the article CIRCLE the statements that indicate the TOOL used by the Fed and LABEL the tool used on the article. You will use a series of THREE GRAPHS to show how the use of this tool by the Fed will affect the economy. (see monetary policy graphs below or in the yellow pages). You must carefully explain how the use of the FED TOOL will affect the excess reserves of banks and the money supply, and then discuss (by explaining the graphs) how this will affect interest rates, the amount of investment, and aggregate demand.. THEN you must explain how this change in aggreage demand will affect UE, IN, and EG. Your AS/AD graph MUST show the full employment level of real GDP. EXPLAIN the GRAPH: So, if the money supply decreases you must say "the money supply decreases from MS1 to MS2". If the interest rates increases you must say, "interest rates increase from ir1 to ir2". If the amount of investment decreases you must say, "the amount of investment decreases from I1 to I2". If agregate demand decreases, you must say, "aggregate demand decreases from AD1 to AD2". If the price level decreases you must say, "the price level decreases from PL1 to PL2". If the real domestic output decreases you must say, "real domestic output decreases from RDO1 to RDO2". You won't have as much time to write and rewrite this paper. We will try to cover this material as soon as we can, but I strongly suggest that you study ahead and begin early. Below are some YouTube videos that may help you. Do not summarize the article, but rather explain your graph. Let me say this again. Do not summarize the article. Only use the parts of the article that discuss the tool that the Fed is using and what is happening to UE, IN, and EG. You should be summarizing the textbook and class notes to EXPLAIN YOUR GRAPH. The purpose of this paper is to show me that you understand how to use the the three graph model to explain how monetary policy (tools) causes changes in unemployment (UE), inflation (IN), and economic growth (EG). You must properly explain the cause and effect in the correct order (see numbers on the graphs below). Grading: 1/10 means get a new article and start over (if you handed in your original paper on time). 3/10 means that the article is OK, but you must rewrite your analysis 10/10 means you are done! Re-writes: You MUST re-draw the three graphs You MUST redo the outline You MUST get the "Cause-Effect" correct. You must include your original papers stapled to the BACK of your re-write Please, read ALL of the instructions including the PAPER 3 instructions and the GENERAL INSTRUCTIONS at the top of this webpage Please: Watch the VIDEOS below. Study yellow pages 17, 18, and 19. Study pages 365-369 (19th, 328-331), table 16.3 on 368 (19th, p. 331), and Figure 16.5 on pp. 366-367 (19th, 328-329). What does "Investment" mean? Please read textbook pages 139 "Consider this . . . ", 154-155, and 226-228, (19th, 120, 133, and 199-200).

THE CAUSE-EFFECT CHAIN Note the direction of the arrows indicating what causes what. SUMMARY - Your MUST include: news article outline with proper notation Fed tool CIRCLED and LABELED on your article which TOOL was used and what was done with it how the tool changed excess reserves (ER) of banks thorough discussion of changes on each of the three graphs with the correct cause and effect the AS/AD graph MUST show the full employment level of real GDP use the AS/AD graph to explain what happened to UE, IN, and EG. What CAUSES what? Be sure to get the cause/effect order correct. See graphs below

Examples of news articles:

• http://money.cnn.com/2001/01/04/economy/fed/index.htm
• http://www.msnbc.msn.com/id/6064674

Examples of how you should analyze the article:

Lesson 16a Key Problem Videos:

• Article 1 - Fed Lowers Interest Rates
• Article 2 - Interest rates are going up again as the economy gets hotter

Videos that will help you learn how to use the graphs:

• AC Money Market - Macro Review 3:24 [YouTube ACDCLeadership]
• Macro 4.1- Money Market and FED Tools (Monetary Policy) 5:20 [YouTube ACDCLeadership]
• Macro 4.2- Monetary Policy and Aggregate Demand 3:21 (recessionary gap) [YouTube ACDCLeadership]
  • NOTE: the LRAS curve is the level of output where full employment is achieved. We used RDO_f in class or Q_f on the graphs below
• Macro 4.3- Graphing Monetary Policy Practice (AP Macroeconomics) 2:44 (inflationary gap)[YouTube ACDCLeadership]
  • NOTE: the LRAS curve is the level of output where full employment is achieved. We used RDO_f in class or Q_f on the graphs below

Graphs like those that you will be using: